October US ISM services 54.5 vs 54.8 expected

Prior was 54.9Prices paid vs 74.0 priorNew orders vs 59.8 priorEmployment vs 50.1 priorBusiness activity vs 56.5 priorFor background, the Institute for Supply Management’s Services PMI is one of the most closely watched monthly gauges of the US economy.

It’s released at 10 am ET on the third business day of the month, two days after its manufacturing counterpart, and is based on a survey of purchasing and supply executives at services firms.

The report was known as the non-manufacturing index until 2020.Like other PMIs, it’s a diffusion index where readings above 50 signal expansion and below 50 signal contraction.

The headline is a composite of four equally weighted sub-indexes: business activity, new orders, employment and supplier deliveries.

Because services make up the bulk of US economic activity and employment, the survey is often seen as a better reflection of the broader economy than the manufacturing ISM.The prices index is frequently the most market-moving part of the report.

It measures the share of firms paying higher prices for inputs and has become a key early signal for services inflation, which the Federal Reserve watches closely.

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